BRITISH TRADE

Hokitika Guardian, 1 July 1931, Page 3

BRITISH TRADE

FORTNIGHTLY REVIEW. HOOVER PLAN CHANGES THE OUTLOOK WONDERFULLY. United Press Association—By Electric Telegraph.—Copyright. ) LONDON, June 27. Not for many years has there been such a marvellous change in financial and commercial conditions ay was witnessed this week, following President Hoover’s dramatic announcement ut tlie proposed one-year war debts moratorium. A week ago the Stock Exchange and most commodity markets were plunged in gloom and despondency, everybody .earing what v:as going to happen in Germany. Monday saw a. ‘ ('‘tiihplote"'MvcrsaP 'of' the position everywhere. President Hoover’s proposal was acclaimed with enthusiasm. Practically every market rallied sharply and almost every section of the Stock Exchange advanced. Wheat, cotton, rubber cooper, zinc, tin and silver rose considerably. The only commodities failing to respond were • perishable goods, which were mostly so plentiful that an advance was impossible. Good conditions continued throughout the week, the markets yesterday closing linn. The Stock Exchange official list shows many extraordinary rises. Tlie most marked naturally hade been foreign stocks, with Germans leading. British funds, although firm, have been somewhat disappointing, piobably due to the approaching end of the halfyear, and mistrust about the Government’s financial intentions.

j Dominions Stocks. Dominions stocks made a fine recovery and were materially assisted by the announcement of the British Government’s concessions. A satisfactory feature was the improvement in prices of several Australian bank shares, which for some time past had been very depressed. Mining shares also improved considerably on the rise of metals. I | Bank Rate. ! 1 Financial circles have been discussing the probabilities of an early reduction in the Bank rate. Many thought that it was likely to be made last Thursday owing to the growing strength of the Bank of England’s position, thanks largely to the heavy gold influx from Germany. The reserve of notes in the banking department is now £71,182,000, the highest ever recorded, and the stock of gold £162,894,416, the highest since May, 1930, but, although the position is so strong, the Bank authorities exercised their dis-1 cretion and waited until it wa s defin- j itely known what the French attitude towards the Hoover proposal would be. Now that the French Chamber has accepted it, it is generally anticipated that the Bank rate will be reduced 2 per cent next week.

Apples and Pears. Apple prices declined somewhat this week, largely owing to heavy arrivals coinciding with enormous supplies of strawberries, gooseberries and, to a lesser extent, cherries. The market ior pears continues good in both England and Germany, recent arrivals of' Victorians fetching excellent prices.